The House of Representatives has formally adopted the Tax Reform Bill as a working document after deliberations in the Committee of the Whole on Thursday.
Key Highlights of the Tax Reform Bill
- Unanimous Approval: Speaker Tajudeen Abbas commended the Committee on Finance, noting that the bill received 100% approval from representatives of all 36 states and the FCT.
- Value Added Tax (VAT) Structure: The bill maintains VAT at 7.5%, ensuring it remains consumption-based.
- Federal Inland Revenue Service (FIRS) Repeal: The bill proposes replacing FIRS with the Nigeria Revenue Service (NRS) to improve tax collection and administration.
- Seamless Tax Harmonization: The NRS will centralize revenue collection, enhancing efficiency and compliance.
Impact of the Reform
- Simplified tax processes for businesses and individuals.
- Enhanced revenue generation for national development.
- Greater transparency and efficiency in tax administration.
The Tax Reform Bill is a landmark policy shift aimed at improving Nigeria’s fiscal structure and boosting economic growth.
